It is official, Snapchat is going public. Snap, the company behind the messaging app Snapchat, has filed for an initial public offering of shares on the New York Stock Exchange. The SEC filing puts the expected proceeds at USD 3 billion, although details on the number and price of shares has not been set yet.
The offering is made up of non-voting Class A shares, allowing Snap’s management and current shareholders to hold on to their control of the company. Co-founders Evan Spiegel and Robert Murphy still hold over 88 percent of the voting rights of Snap.
Snap notably describes itself as a ‘camera company’ in the filing, suggesting the proceeds could go towards further development of its Spectacles with integrated video camera, released last year. Advertising on the Snapchat app, based around sharing photos and videos, is its main source of revenue, with 158 million daily active users. Last year, the company generated revenues of USD 404.5 million and a net loss of USD 514.6 million. It still had USD 987 million in cash at year-end.
